Legal Question in Credit and Debt Law in California

In short, yes. Read the credit agreement they gave you when you obtained the card, and I am sure that you will find that in most cases, they have very liberal rights when it comes to modifying your account terms, including closing the account. As far as interest rates go, again, they write their credit agreements in a way that allows them to do essentially whatever they want. Much of what we are now seeing with credit cards is a result of the law passed that will govern how credit card companies can increase rates, change terms, etc... which goes into effect on February 22, 2010. The credit card companies are actively trying to make their accounts super-profitable before the new law goes into effect and they are limited in what they can do. Do, however, read your credit agreement and see if anything they have done violates that agreement, then insist that they correct any violations of the agreement. As an alternative, refinance the card with another credit card issuer who will give you better terms.

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